The Chuvash Republic

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The Chuvash Republic is situated in the center of European part of Russia - the Volga-Vyatka economic zone, between the Sura and Sviyaga rivers. Its area is 18,300 sq. km. The capital of the republic is Cheboksary founded in 1469. There are about half a million inhabitants in the city.

Chuvashia is surrounded by industrially developed centers of Russia. In the west it borders on Nizhni Novgorod region. In the north, the Republic of Marii El and in the east, the Republic of Tatarstan. The Republic of Mordovia and Ulyanovsk region are its neighbors in the south. The distance between Cheboksary and Moscow is 650 km.

The republic is connected with other regions by rail, water and motorways and airlines. In October 1995, an international sector was opened in the airport of Cheboksary.

The Chuvash Republic is unique. The Volga, Sura, Tsivil rivers crossing its territory, as well as 400 lakes being pearls of the Chuvash land are sources of water resources. One of the recognized treasures of the republic are forests covering one-third of the space mostly along the Sura river and in Zavolzhye. The forests of Chuvashia are the combination of hilly leafy groves, mixed woods and coniferous forests. Typical representatives of wildlife are elks, bears, wolves, wild boars, hares, foxes, martens and otters.

The climate is temperate continental. The soils are turf and podzol. In the republic there are significant natural reserves of gypsum, combustible shales, dolomites, carbonates, tripoli, sand, clay and peat. Thorough geological researches conducted recently show that Chuvashia has significant reserves of oil and gas.

The Chuvash are considered the third nation of Russia. The Chuvash ancestors were tribes of ancient Bulgars and Suvars that resided in the Northern Caucasus in the 5th-8th centuries. In the 7th-8th centuries one part of Bulgars left for the Balkans, where they dissolved among the Slavs. Another part moved to the middle Volga region, where later they formed the ethnic foundation of the Chuvash and Kazan Tatars.

On the basis of rural Bulgar population who did not adopt Islam in the 15th-16th centuries, the Chuvash nationality was formed. In 1551 the Chuvash joined Russia.

The Chuvash language belongs to the Bulgarian subgroup of the Turkic group of the Altai language family. The first alphabet with the Cyrillic graphics was published in 1871. In ancient times the Chuvash people used runic literature.

During the period from the 18th to the first half of the 19th century the Chuvash were forced to adopt Christianity.

The Chuvash Republic is a sovereign republic in the Russian Federation. In the tsarist Russia the territory of the contemporary Chuvashia belonged to two gubernias: Kazan and Simbirsk. On June 24, 1920 the Chuvash Autonomous Region was established, 1992 it was transformed into the Chuvash Republic.

According to the Constitution of the Chuvash Republic, the state power in the republic is carried out by the President, the Cabinet - the Government of the Chuvash Republic and the State Soviet (Parliament).

The President of the Chuvash Republic is elected for four years and not more than for two terms. On January 21, 1994 Nikolai Vasilyevich Fyodorov, a constitutional lawyer, was inaugurated as the first President.

The Government of the Chuvash Republic carries out reforms directed to the perfection of the industrial potential, effective use of resources, development of export potential and improvement of its structure and attraction of foreign investments.

One of the important goals at the contemporary stage of economic development is integration of the republic in the system of international economic relations. We have agreements on trade, economic, cultural and scientific cooperation signed with the majority of constituent parts of the Russian Federation and with some countries of the CIS. The Government of the republic heads for establishing closer relations with foreign countries.

On May 27, 1996 the presidents of the Russian Federation and the Chuvash Republic signed the Treaty on delimitation of subjects of jurisdiction and authorities between state power bodies of the Chuvash Republic and those of the Russian Federation.

Labor Resources

At the beginning of 1996, the population of the republic equaled 1,360,800 people, or 74 persons per 1 sq. km. The Chuvash are the fourth largest nation in the Russian Federation among the indigenous nationalities.

By the end of 1995, there were 652,000 economically active people in the Chuvash Republic.

Mineral Resources

There are considerable mineral resources on the territory of the Chuvash Republic. A large field of gypsum with anhydrite and dolomite strata has been prospected. It was discovered by technological tests that gypsum stone is suitable for manufacturing construction gypsum, and it is possible to get high-quality gypsum, if processed additionally. Reserves of the gypsum deposit is 120 mn. tons, those of anhydrite - 50.9 mn. and dolomite - 12.2 mn. tons.

There are 46 deposits of clay and loam for manufacture of bricks, 4 - with reserves of 9.7 mn. cubic m of ceramic raw material, 11 - with total reserves of 71 mn. tons of carbonate rocks.

On the territory of Alatyr district there is also a deposit of tripoli suitable for manufacture of heat-insulation materials. There are deposits of phosphorite and combustible shales in the southern and southwestern parts of the republic. Peat deposits are found on the whole of the territory.

Industries

In the Russian territorial division of labor, the republic stands out with its industrial development of the economy, processing branches being predominant. The share of industry in GNP is more than 60%.

The most advanced and perspective industries are power engineering, machine building, chemical and light industries.

In the branch structure of industry, machine building and metal working make 36%, light industry - 24%, chemical industry 15%, food industry - 10%, power engineering - 7%, production of building materials, flour- & groat-milling and combined food industries make 1%.

Machine building is represented by powerful industrial tractors, electro- technical and measuring equipment, physical devices, trailers, shuttleless looms, cables; chemical industry is famous for production of caustic soda, dyes, pesticides, tanning extracts, plastics; light industry produces cotton fabrics, threads, yarn, knitted wear, socks and stockings.

Chuvashia has the 'Promtractor' factory - the only enterprise in Russia and Europe, manufacturing powerful tractors for gold-mining, coal and gas industries, road construction, which competes with American and Japanese firms.

The production of the 'Chimprom' JSC (plant protectants, synthetic resins and plastics, plasticizers, dyes and many other things) is in great demand in the world market. The enterprise develops and puts new herbicides into production, and is actively gaining the market and competing with American companies.

On the basis of the 'Dieselprom' JSC production of licensed diesel engines for automobiles and tractors, sea vessels and locomotives, to be operated in any climatic conditions, is organized. Also, diesel-generators for heating and providing electricity for settlements consisting of 300-500 houses are assembled.

These diesel-generators can consume any kind of fuel. The 'Dieselprom' JSC meets the demands of international standards.

The 'Textilmash' JSC is the only manufacturer in Russia of a wide scale of high-duty, economically effective weaving looms. The factory has its representations in the countries of Europe, Middle East, Asia and Latin America, and exports its products to 35 countries around the world. In 1980 the factory was awarded the 'Golden Mercury' international prize.

A number of enterprises of the Chuvash Republic specialize in development, manufacture, deliveries and service of electrotechnical products. They are supplied to energy systems, enterprises of metallurgic, machine building, chemical and other branches of industry.

The largest manufacturer of cotton fabrics is the Cheboksary Cotton Mill Ltd. It manufactures 50 different types of cloths - chintz, sateen, medapolam, poplin, heavy cloth, cloth for heavy curtains, upholstery, as well as technical fabrics, threads and yarn.

The enterprising sector is developing dynamically in the Chuvash Republic, great attention is paid to it and the state supports it significantly. The following major goals are taken into consideration: creation of competitive environment, reasonable demonopo-lization, organization of additional work places in the conditions of labor abundance, introduction of new advanced technologies, meeting the demands of the population in goods and services.

The Government works over creation of a favorable regime for the activity of enterprising, initiative, modern people, providing tax privileges to commodity producers and investors.

Agroindustrial Complex

Agriculture is represented by more than 700 enterprises of various organizational forms. The number of agricultural workers consists of 22.9% of the Republics labor force. Hop, potato, grain, cattle, pig-breeding and poultry farming are the leading branches of agriculture. There are also bee-keeping farms and farms for the breeding of fur-bearing animals.

Hop-growing, which is one of the clearly expressed specializations of the Chuvash Republic, has a many-centuries old tradition due to the particular climatic conditions and soils. At present more than one hundred agricultural enterprises are engaged in hop-growing. Chuvashia produces two thirds of the Russian hop. Among 53 countries growing hop in the world, Chuvashia is 8th regarding the volume and 4th in the quality of this product. The general area of hop plantations makes approximately 3,000 hectares, an annual harvest is about 3,200 tons. In 1994 alone brewers perfected 4 new brands of beer, which earned high appraisal of experts from Bavaria, Sweden and Holland. However, hop is used not only in brewing, but also in pharmacology, food industry, perfumery, even in atomic power engineering and space technology.

Potato-growers of Chuvashia are known around Russia for the quality of their product. Having mastered new technologies with the use of the region's scientific potential, the republic began picking 350-400 centners of potato from one hectare. These new technologies are planned to be introduced more widely, in order to make potato-growing in Chuvashia competitive. The main practical problem facing the republic today is the lack of modern technology in potato processing.

Banking Activity

There are 19 commercial banks that function in the Chuvash Republic. The biggest are "Chuvashcreditprombank' and 'Chuvashprofinbank'. Large regional banks have opened branches, e.g. the Chuvash regional branch of Agroprombank (Moscow), a branch of the Industrial commercial 'AvtoVAZbank', a branch of 'Russia-Mals bank' (Moscow), a branch of the Volga-Oka commercial regional bank of Vneshtorg-bank of the Russian Federation (Nizhni Novgorod). The latter has established corresponding relations with not only Russian banks, but with first-class banks around world, such as Bank of New York, Chase Manhattan Bank, Dresdner Bank, etc.

Extensive corresponding net of commercial banks provides a wide mobility in getting international payments through, with high efficiency and all forms of transactions used in the world banking practice. Banks are equipped with all necessary means of inter-bank telecommunications, some of them working actively on the SWIFT system.

Both legal entities and private individuals, as well as foreign partners may be founders of commercial banks.

Taxation of banks' profits is carried out according to the Law of the Russian Federation "On the profit tax of enterprises and organizations". The tax rate for all banks functioning on the territory of the Chuvash Republic is 43% (13% is payable to the budget of the Russian Federation, 30% - to the republican budget). But within the framework of the reform in the Chuvash Republic to regulate economic relations, banks have certain privileges. If banks direct not less than 90% of credit resources to meet the requirements of enterprises and organizations situated on the territory of the Chuvash Republic, the republican profit tax rate for these banks is 10%. Besides this, privileges are given to the profit gained by commercial banks for granting loans and credits to the citizens of the Chuvash Republic for construction and purchase of living quarters. In this case the tax rate is 5%.

In order to increase the volume of credits and to stimulate the use of promissory notes on the territory of the Chuvash Republic, some privileges are granted to the commercial banks providing credits by promissory notes bearing no interest to the enterprises situated in the Chuvash Republic.

The decree of the President of the Chuvash Republic "On additional measures in regulating economic relations in the Chuvash Republic" has played a positive role in attraction of banking and insurance capital to the territory of the Chuvash Republic, as well as in extension of external economic relations with the neighboring regions of the Russian Federation. It stipulates a 10% republican profit tax rate of banks and insurance companies founded after May 1, 1994, this rate being valid during three years from the day of registration of these banks and insurance companies.

Communication

For servicing the population and national economy 519 communication stations function in the republic, providing local telephone service, telegraph & long-distance communication, wire broadcasting. Services of users' telegraphing and those of international TELEX network, the DINES electronic post, transfer of data as per the X-25 protocol are available in all towns and districts.

A large work in development of the most modern systems of international and long-distance communication is carried out with the help of the Siemens company. Services for personal radio call, those of cellular communication are at your disposal in the capital city. Users of cellular communication have the opportunity to automatic access to long-distance and international networks, as well as satellite communication.

Construction

The republic is proud for its powerful construction, which gained popularity and leading positions in the Russian market of building industry. The construction complex includes building and specialized organizations, enterprises producing building structures, components and materials; research and design institutes; supplying and completing organizations; automobile companies and other organizations participating in creation of final building production.

One of the leading construction formations of Russia is the 'Monolithstroi' enterprise, on the basis of which the All-Russian center of monolithic construction technology was organized.

The largest contract formation of the republic is the 'Chuvashstroi' construction-industrial association specializing both in housing and industrial construction, and realizing construction and designing of houses in monolithic and brick execution. Some trusts specialize in construction and designing of large-panel house construction, in production of building materials and structures.

Cellular concrete producing factory is being commissioned in Novocheboxarsk - the third plant so far in Russia to put out this perspective material.

On the basis of the 'Lakokraska' factory in Kanash, a joint Chuvash-American enterprise commenced manufacturing a new product - ecovata. This material is used as heat-insulation in dwelling houses, production facilities, heat-pipelines, etc.

Science and Education

A network of educational institutions has been created to get free general secondary education and on competition terms to get professional education at state and municipal educational institutions.

Foreign relations in the field of education are developed and strengthened. On the basis of the agreement on cooperation signed by the Ministry of education, science and higher school of the Chuvash Republic and foreign legal entities, untraditional general secondary schools were opened and operate such as the republican Chuvash-Turkish lyceum-boarding school, the Chuvash-German high school in Trak, the Chuvash-German high school N37 and the Chuvash-French department of lyceum N59 in Cheboksary. High schools Nos 4, 34, 46 and lyceum N1 in Cheboksary have established close links with foreign partners. They exchange delegations of children and teachers and take part in cognitive and cultural programs.

If in 1993 only 134 students per 10,000 of population studied at higher schools of the republic, now this figure is 186. 119 doctors, 785 candidates of sciences and 670 teachers work at higher schools of the republic.

International links of higher schools of the republic with educational institutions of foreign states are extended.

Our University has signed agreements on cooperation with 20 foreign organizations. The Chuvash National Academy of Sciences and Art with its 45 full and 30 corresponding members coordinates and organizes realization of the research development program in the republic.

Transport

Favorable conditions to be engaged in business and tourism are created by the transport infrastructure, one of the most highly developed in Russia. Autos carry majority of transportation (49% freights and 61% passengers). Bus service is good here: there are 4 terminals and 31 stations, which make daily trips to all neighboring regions and republics.

One of the paramount railway junctions of Russia - the town of Kanash - is on the territory of the Chuvash Republic. Major railway lines intersect it and connect practically all regions of Russia. The railway realizes 29% cargo and 12% passenger transportation.

The Volga river connects the Chuvash Republic with the national and international network of water ways. If you go down the river on an internal river vessel, it is possible to reach the regions situated in the Black and Caspian Sea basins, and via the Danube - Europe; up the river - the Moscow region, a large industrial center of Russia.

The advanced road network of the Republic facilitates solution of many problems connected with accommodation of production, transportation of ready-made products and raw material. Not long ago a bridge was built across the Cheboksary hydroelectric power station, that connects not only the neighboring republics, but has opened numerous routes to the south and north for the whole Ural-Povolzhye region.

The Cheboksary airport can receive both cargo and passenger aircraft practically of all types and sizes. There are daily flights to Moscow. In October 1995, the capital of the republic opened an international sector in its airport, allowing to fly to all countries of the world.

Foreign Economic Activity

Foreign economic activity is directed to development of export potential and improvement of export structure; rationalization of import aimed on perfection of the industrial potential, introduction of advanced technologies, processing of agricultural production; effective use of resources by means of transfer from export of raw materials to export of products with the high level of processing; increase of production competitiveness; attraction of foreign investments for technical modernization and creation of the potential for an extended reproduction; creation of conditions for investments by developing the mechanism of guarantees, market infrastructure, by regulating taxes, granting privileges, leasing rates, etc. The enterprises of the Chuvash Republic have the right of independent exit to foreign market. There are 50 exporting enterprises nowadays and their number increases continually.

The Chuvash Republic maintains trade and economic relations with more than 60 countries of the world, including Australia, Belgium, Germany, Italy, France, Finland, the U.S., Argentina, Brazil, India, Mexico, Syria, Turkey, states of Eastern Europe and the Baltics.

The share of export deliveries makes approximately 50% of foreign trade turnover of the republic, from which nearly half makes supplies to the economically developed countries. The closest ties are established with Germany: 20% export and 25% import.

The main export articles are: machine building production - industrial tractors, shuttleless looms, spare parts and fittings for piston engines, bodies, vans, electric loaders and spare parts for agricultural machinery, anti-hail installations; electrotechnical production - instruments, cable products, instrumentations and apparatuses; chemical production - products of inorganic chemistry, gluing substance, dyes, paint and varnish articles, plant protectants; consumer goods - fabrics, hosiery, knitted wear, rubber articles and wood products; secondary resources - waste paper, animal hides; dry milk.

In order to stimulate foreign economic activity, the Chuvash customs house was organized in August 1992. It is an integral part of the united system of the State customs committee of the Russian Federation and is a law-enforcement body. Later on, a decision was made to establish customs posts in the towns of Shumerlya, Alatyr, Kanash to increase the work efficiency.

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